Finance & Accounting - City & Guilds

City & Guilds
Accounting portfolio launch

Agenda slide
1. Introductions
2. Information on new qualifications
3. Computerised Accounts
4. Business Finance
5. Book-keeping and Accounts
6. Support materials
7. Plenary

1. Introductions

2. Information on new qualifications

Computerised Accounts (8989)
• Level 1-3 Award in Computerised Accounts (8989)
• Replaces 8956 which expired on 30 September 2008
• Guided Learning Hours
Level 1 – 30 GLH
Level 2 – 30 GLH
Level 3 – 60 GLH

Business Finance (8990)
• Level 1-3 Award in Business Finance (8990)
• Guided Learning Hours
Level 1 – 30 GLH
Level 2 – 30 GLH
Level 3 – 60 GLH

Book-keeping and Accounts (8991)
• Level 1-2 Award in Book-keeping and Accounts (8991)
• Level 3 Award in Accounting and Book-keeping (8991)
• Replaces 8953 which expired on 30 September 2008
• Guided Learning Hours
Level 1 – 30 GLH
Level 2 – 30 GLH
Level 3 – 60 GLH

Withdrawn qualifications
• Qualifications that are no longer available after December 2008:
Level 3 Accounting (8950)
Level 1 and 2 Commercial Numeracy (8955)
Level 3 Cost and Management Accounting (8957)

Examination fees
• All single subject qualifications follow the same fee structure
Level 1 - £22.00
Level 2 - £24.00
Level 3 - £28.00

Qualifications Credit Framework (QCF)
• The new qualifications will be on the QCF NOT the NQF
• Qualifications will be fundable
• NQF will no longer exist from September 2010
• For further details on the QCF please visit www.qca.org.uk

3. Computerised Accounts (8989)

Changes to Level 1 Computerised Accounts
• Nothing has been removed

Additions to Level 1 Computerised Accounts
• Use of Cash Account as well as Bank Account
• Introduction of capital to both Bank A/C and Cash A/C
• Process Bank Payments
• Nominal Ledger printouts (Bank A/C and Cash A/C)

Changes to examination
• Reading time 5 minutes

Changes to Level 2 Computerised Accounts
• Removal of:
Handwritten batch control sheets
Introduction of capital to both Bank and Cash (now L1)

Additions to Level 2 Computerised Accounts
• Prepare, process and print a service invoice
• Transfer between Bank A/C and Cash A/C
• Process returned cheque or cancelled cheque
• Nominal journal entries
• Process wages journal
• Aged debtor / aged creditor analysis
• Day book printout
• Print remittance advice
• Print customer statement

Changes to examination
• Examination time 1 hour 30 minutes
• Reading time 5 minutes

Changes to Level 3 Computerised Accounts
• Nothing has been removed

Additions to Level 3 Computerised Accounts
• Bank reconciliation statement

Changes to examination
• Reading time 5 minutes

4. Business Finance (8990)

Level 1 Business Finance
• Provides an introduction to numerical and financial skills used
in the workplace
• Focus on the business application of numerical skills
• The essential skills of Commercial Numeracy are retained as
they relate to a business context

Level 1 Business Finance
• Assessment will have a financial bias (e.g. calculations of
invoices, payroll calculations)
• Test of knowledge over syllabus assessed by:
- 10 short answer questions
- Application of knowledge tested in
- 4 longer tasks
• Forms for completion will be provided on the examination
paper

Level 1 Business Finance
• The following scenarios will be used to assess application of
numerical skills and understanding of business finance
- Calculations involving prices, price extensions, discounts sales
tax in the context of orders
- Job costs or estimates involving materials, labour costs and
expenses
- Calculation of gross and net pay and cash analysis
- Graphical representation of performance indicators (e.g.
sales, customer complaints)

Level 2 Business Finance
• Concerned with the application of numerical skills to
management information for planning and control
• Candidates expected to use raw data and present it as useful
information in contexts of:
- Budgets
- Costing
- Stock control and valuation
- Credit control
- Performance indicators

Level 2 Business Finance
• Some technical understanding of accounting, finance and
costing is required in addition to numeracy
• The assessment will be largely mechanical involving the
preparation of information and completion of forms
• Some ability to interpret results will be required but the focus is
on preparing information for management

Level 3 Business Finance
• Continues with application of numerical skills but with a focus
on providing information in a form suitable for decision making
and problem solving by management
• Typical tasks assessed will include:
- Allocation, apportionment and absorption of overhead costs
- Variance analysis in standard costing
- Marginal costing
- Break-even
- Capital investment appraisal

Level 3 Business Finance
• Some of the technical areas of Cost and Management
Accounting retained
• Addition of techniques involved in providing information for
management decision making and problem solving
• Candidates will be expected to interpret and analyse
information and make recommendations
• Communication skills may be tested through presentation of
findings by memoranda, short reports, charts, tables, graphs

5. Book-keeping and Accounts (8991)

Changes to Level 1 Book-keeping and Accounts
• Removal of:
Short written questions
Trading, profit and loss accounts
Balance sheets
• Mapped to National Occupational Standards for Accounting

Additions to Level 1 Book-keeping and Accounts
• Day books
• Calculations – sales tax and purchase tax
• Calculations – trade discounts and settlement discounts
• Three column cashbook
• Sales and purchase returns
• Preparation and checking of source documents, plus other
business documents and forms
• Greater emphasis on completion of source documents and
checking information for errors in calculation

Changes to examination
• Larger number of tasks
• Scenario based
• Completion on the prepared exam paper

Changes to Level 2 Book-keeping and Accounts
• Removal of:
Conventional trading, profit and loss accounts
Conventional balance sheet
• Mapped to National Occupational Standards for Accounting

Additions to Level 2 Book-keeping and Accounts
Extended trial balance with adjustments for:
• accruals
• prepayments
• bad debts
• doubtful debts
• depreciation
• closing stock

Additions to Level 2 Book-keeping and Accounts
Accounting for capital expenditure and depreciation
• ability to distinguish capital and revenue expenditure
• preparation of ledger accounts for depreciation
Year end adjustments
• ledger accounts for accruals and prepayments
• ledger accounts for bad and doubtful debts
• journal adjustments
• preparation of a trial balance (from one that is initially
incorrect)

Changes to examination
• Larger number of tasks
• Scenario based
• Completion on the prepared exam paper
• Major task will be the completion of an extended trial balance

Changes to Level 3 Book-keeping and Accounts
• Removal of:
Cash flow forecasts
• Mapped to National Occupational Standards for Accounting

New Level 3 syllabus
• Emphasis will be placed on the completion of different
aspects of final accounts for a range of organisations rather
than, for example, three balance sheets covering
partnerships, limited companies and clubs and societies.

Level 3 Book-keeping and Accounts examination
• Larger number of tasks
• Completion on the prepared exam paper
• Less repetition of tasks allowing for greater testing of
understanding

6. Support materials

Support materials
• Qualification handbook
• Sample papers
• Examination Support Guide
• FAQs
• Downloadable from www.cityandguilds.com

7. Plenary

Further details
City & Guilds
1 Giltspur Street
London
EC1A 9DD
T +44 (0)20 7294 8133
F +44 (0)20 7294 2414
www.cityandguilds.com